Question

--/10 Question 10 View Policies Current Attempt in Progress Marigold Company is considering buying equipment for $260000 with

0 0
Add a comment Improve this question Transcribed image text
Answer #1

OPTION: $135000

EXPLANATION:

Accounting rate of return = average annual net income/average investment

Average investment = (book value at beginning of year 1 + salvage value at the end of useful life)/2

= ($260000 + $10000)/2

= $135000

Add a comment
Know the answer?
Add Answer to:
--/10 Question 10 View Policies Current Attempt in Progress Marigold Company is considering buying equipment for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cullumber Company is considering buying equipment for $220000 with a useful life of 5 years and...

    Cullumber Company is considering buying equipment for $220000 with a useful life of 5 years and an estimated salvage value of $6000. If annual expected income is $28000, the denominator in computing the annual rate of return is $220000. $110000. $113000. $226000.

  • --/10 Question 9 View Policies Current Attempt in Progress Sheridan, Inc. is considering purchasing equipment costing...

    --/10 Question 9 View Policies Current Attempt in Progress Sheridan, Inc. is considering purchasing equipment costing $40000 with a 6-year useful life. The equipment will provide annual cost savings of $9730 and will be depreciated straight-line over its useful life with no salvage value. Sheridan requires a 10% rate of return. Period 6 Present Value of an Annuity of 1 8% 9% 10% 11% 12% 15% 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate internal rate of return...

  • Question 7 View Policies Current Attempt in Progress Concord Corporation purchased a depreciable asset for $566000....

    Question 7 View Policies Current Attempt in Progress Concord Corporation purchased a depreciable asset for $566000. The estimated salvage value is $29000, and the estimatedus for depreciation. What is the depreciation expere on this set? e s 10000 hours. Casoned the set for 1100 hours in the current year. The activity method will be Question 16 View Policies Current Attempt in Progress during installation and installation costs of $665. What is the cost of Marigold Corp purchased equipment for $40000...

  • --/10 Question 7 View Policies Current Attempt in Progress Marigold Co. purchased some equipment 3 years...

    --/10 Question 7 View Policies Current Attempt in Progress Marigold Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(900). Annual cost savings were: $7000 for year 1:5000 for year 2; and $3000 for year 3. The amount of the initial investment was Year Present Value of 1 at 12% 0.893 0.797 0.712 PV of an Annuity of 1 at 12% 0.893 1.690 2.402 $11472...

  • Question 5 1.6/2. View Policies Show Attempt History Current Attempt in Progress On July 1, 2019,...

    Question 5 1.6/2. View Policies Show Attempt History Current Attempt in Progress On July 1, 2019, Sheridan Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the balance in Accumulated Depreciation- Equipment for this equipment after depreciation expense has been recorded on December 31, 2022. ulated Depreciation-Equipment...

  • Send to Gradebook < Prev Next Question 5 View Policies Current Attempt in Progress Marigold Corp....

    Send to Gradebook < Prev Next Question 5 View Policies Current Attempt in Progress Marigold Corp. purchased machinery for $313,500 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $16,500, production of 237,600 units, and working hours of 25,000. During 2021, Marigold Corp. uses the machinery for 2,650 hours, and the machinery produces 26,520 units. From the information given, compute the depreciation charge for 2021 under each of the...

  • Question 8 --/2 View Policies Current Attempt in Progress Sandhill Company is considering buying a new...

    Question 8 --/2 View Policies Current Attempt in Progress Sandhill Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10 million. This investment will consist of $2.20 million for land and $9.90 million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of 10 years for a price of $5.10 million, which is $2.15...

  • Question 3 View Policies Current Attempt in Progress Flint Company acquires a delivery truck at a...

    Question 3 View Policies Current Attempt in Progress Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a salvage value of $11,000 at the end of its 10-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method. Year 1 Year 2 Annual depreciation expense $

  • Question 6 --/1 View Policies Current Attempt in Progress On January 1, 2020, the Flint Company...

    Question 6 --/1 View Policies Current Attempt in Progress On January 1, 2020, the Flint Company ledger shows Equipment $68,000 and Accumulated Depreciation Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life of 9 years and salvage value of $3,200. On this date, the company concludes that the equipment has a remaining useful life of only 5 years with the same salvage value. Compute the revised annual depreciation. Revised annual depreciation $

  • Question 19 View Policies Current Attempt in Progress Vaughan Manufacturing purchased a depreciable asset for $593000...

    Question 19 View Policies Current Attempt in Progress Vaughan Manufacturing purchased a depreciable asset for $593000 on April 1, 2015. The estimated salvaevalis 550000, and the estimated totalus accumulated depreciation on May 1, 2018 when the asset is sold life is 5 years. The straight-ine method is used for depreciation. What is the balanc Question 17 View Policies Current Attempt in Progress On January 2, 2015. Bonita Industries acquired equipment to be used in its manufacturing operations. The equipment has...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT